Tennessee · East Tennessee
Knoxville, TN construction loans
Knoxville · Powell · Halls · Farragut · Maryville · Oak Ridge · Sevierville
Many lenders who offer purchase loans don't offer one-time close construction loans, especially for manufactured and modular homes. That's what we specialize in, and our team serves the Knoxville area by phone and video. We start with a conversation, not an application.
Building in the Knoxville area
Knoxville is East Tennessee's largest city, home to the University of Tennessee and TVA's headquarters, with Oak Ridge National Laboratory nearby. Many of the buyers we work with keep a job in the city and build in the surrounding counties, like Knox, Blount, Sevier, Jefferson, Grainger, and Union.
Their homes are often manufactured or modular homes on land they own, or modest site-built homes on family acreage. Two of our recent FHA construction loans were built north and east of Knoxville.
Knoxville at a glance
- County
- Knox County, with many buyers building in neighboring counties
- Nearby towns
- Powell, Halls, Farragut, Maryville, Oak Ridge, Sevierville, and Rutledge
- Major employers
- The University of Tennessee, TVA, Oak Ridge National Laboratory, and the region's health systems
- Our team
- Johnson City, TN, by phone, video, or appointment
What to check first when you build here
Who issues your building permit
Inside Knoxville city limits, permits come from the City of Knoxville's Plans Review and Inspections Department. A Knoxville mailing address doesn't always mean you're in the city. In unincorporated Knox County, Knox County Codes Administration issues permits, and you'll need a certified address from Knoxville-Knox Planning.
Septic: Knox County is different
In Knox County, septic permits come from the Knox County Health Department's Groundwater Protection Division rather than the state, and the county won't issue a building permit for a home on septic until that permit is in hand. Outside Knox County, septic permits go through the Tennessee Department of Environment and Conservation.
Budget for the land, not just the house
Wells, driveways, and grading on rural and hillside lots are where builds most often go over budget. We build those costs into your loan from the start. The cost planner gives you an early estimate of the full project.
Recent builds near Knoxville
Names have been changed to protect client privacy. Results reflect each borrower's individual circumstances and aren't typical or guaranteed.
Local builders and retailers
Builders and home retailers near Knoxville
Working with a builder or retailer in Knoxville, Powell, Halls, Farragut, Maryville, Oak Ridge, or Sevierville? Tell us who you're considering, and we'll check their approval early.
We've closed loans together
- Clayton Homes (opens in a new tab)Alcoa
- Summertown Metals (opens in a new tab)Barndominiums, across TN and KY
Build on your land
America's Home Place (opens in a new tab)
Manufactured and modular homes
- Clayton Homes (opens in a new tab)Knoxville
- Preferred Living Homes (opens in a new tab)Knoxville
- Oakwood Homes (opens in a new tab)Powell
Also nearby: Clayton Homes (opens in a new tab) (Kodak), Meadows Homes (opens in a new tab) (Kodak), Clayton Homes (opens in a new tab) (Strawberry Plains).
Builder or retailer serving the Knoxville area? We'd love to hear from you. Email us and we'll be in touch.
Listings are provided for convenience. Preferred Rate, a DBA of American Pacific Mortgage, is not affiliated with, and does not endorse, the builders and retailers listed. All loans are subject to credit approval and underwriting; this is not a commitment to lend.
Construction loan programs in Knoxville
We offer VA, FHA, and conventional one-time close construction loans, so your land, construction, and permanent mortgage are covered by one loan with one closing.
- VA construction for veterans and active duty
- FHA construction when you're building with a smaller down payment
- Conventional construction when you have strong credit and a down payment
2026 loan limits in Knox County (one-unit home)
Limits are set each January by HUD and the FHFA. Your actual loan amount depends on your qualifications and the appraised value.
FAQ
Frequently asked questions
Can I get a construction loan in Knoxville if your office is in Johnson City?
Yes. We work across East Tennessee and five other states, and most of our clients work with us entirely by phone, video, and email.
Does the City of Knoxville or Knox County issue my building permit?
It depends on whether your lot is inside city limits. Inside the city, the City of Knoxville issues permits. In unincorporated Knox County, Knox County Codes Administration does, even if your mailing address says Knoxville.
Will you finance a condo downtown?
No. Our construction loans are for single-family homes built on land, including site-built, modular, and manufactured homes.
My dealer is near Knoxville, and my lot is in Sevier County. Does that work?
Yes. Your lot's county determines the permit office and septic process. Outside Knox County, septic permits go through the Tennessee Department of Environment and Conservation.
Is VA construction available in Knox County?
Yes. Eligible veterans and active duty can use a VA one-time close construction loan in Knox County and across Tennessee. See VA construction loans.
Your land. Your build. Let's talk it through.
A free consultation is 20 minutes. We cover your land, your eligibility, and the right loan structure. No application required.
Tennessee · Virginia · North Carolina · South Carolina · Georgia · Kentucky
20 minutes · no application · no commitment
NewBuild is led by the Arrowood Team at Preferred Rate. 260+ five-star Google reviews.
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